Growth, Distribution and Politics

We start by arguing that to understand growth differences across countries and time, one needs to understand differences in public policies that affect the incentives for productive accumulation of capital, human capital, or technically useful knowledge. And to understand policy differences one need...

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Bibliographic Details
Main Author: Tabellini, Guido
Other Authors: Persson, Torsten
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 1991
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Growth, Distribution and Politics  |c Guido Tabellini, Torsten Persson 
260 |a Washington, D.C.  |b International Monetary Fund  |c 1991 
300 |a 19 pages 
651 4 |a Chad 
653 |a Wealth 
653 |a Economics 
653 |a Distribution: General 
653 |a Income 
653 |a Analysis of Collective Decision-Making: General 
653 |a Public finance & taxation 
653 |a Income distribution 
653 |a Taxes 
653 |a Saving 
653 |a Personal income 
653 |a Aggregate Factor Income Distribution 
653 |a Personal Income, Wealth, and Their Distributions 
653 |a National accounts 
653 |a Taxation, Subsidies, and Revenue: General 
653 |a Market Structure and Pricing: General 
653 |a Consumption 
653 |a Income tax systems 
653 |a Macroeconomics 
653 |a Macroeconomics: Consumption 
653 |a Income inequality 
653 |a Taxation 
653 |a Income tax 
700 1 |a Persson, Torsten 
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520 |a We start by arguing that to understand growth differences across countries and time, one needs to understand differences in public policies that affect the incentives for productive accumulation of capital, human capital, or technically useful knowledge. And to understand policy differences one needs to understand how political institutions aggregate conflicting interests into public policies. We then survey some recent work along these lines, which argues that more inequality leads to slower growth. Next, we illustrate some of the basic ideas of this work, by help of a simple model of taxation. We also present some econometric cross-country evidence, which is largely supportive of the basic ideas. We end by suggestions for further work